Mr. Çetinkaya, President of the Central Bank of the Republic of Turkey (CBT) has said that the Turkish banking sector maintained its strength and added “We have full confidence that our economy and the banking sector will carry their successful performance, further upwards”.
Çetinkaya talking at Forum Istanbul 2017, referred to the transformation of financial systems, especially after the global crisis, and its reflection on Turkey. The President reminded nearly 10 years after the global crisis, it would be still difficult to talk about a full recovery in economy despite the increasingly positive signals in on the global level. ÇETİNKAYA conveying that experiences and academic literature point out that crises with problems relating to the financial system mainly, last longer and end up to be more costly, emphasised that factors like excessive indebtedness, rapid credit growth and inadequate risk management triggered and deepened such crises.
Çetinkaya said, "While these facts lead to excessive risk appetite in good times, they feed risk aversion in bad times, causing severe economic cycles that include periods of high cost growth and downsizing. . It is important that economic growth is strong, sustainable, balanced and inclusive. For this to happen, it should be a priority target to increase the stamina of public and private stakeholders, financial and non-financial sectors, in short, all the actors against shocks."
"Efficiency is important in terms of sustainable growth"
Cetinkaya emphasised that the main agenda that shaped the financial markets after the global crisis was durability and added that financial regulations and money markets had been in the foreground, during said period, in specific.
"The Turkish banking sector maintains its strong structure"
Çetinkaya stated that looking at the picture Turkey displayed in terms of financial systems during this period, it was observed that the country had accomplished such global reforms in a fast and successful manner.
Murat Çetinkaya pointed out that the Turkish banking sector, which had a very successful test with a strong capital structure, healthy asset quality and high profitability level during the global crisis, maintained its strong outlook in the post-crisis period, as well.